The recent covid pandemic has had a huge impact on different sectors and regions throughout the country. Multiple lockdowns meant the UK economy shrank by a record 9.9% in 2020, and though it is now starting to recover, some parts of the UK are doing better than others.
One of the success stories is Manchester. The city’s property market proved its resilience throughout the pandemic – it now has some of the highest price growth in the UK, and Manchester’s property investment climate is ranked the best in the country.
But why is Manchester recovering so much more quickly than other UK cities? Here are four reasons why property investment in Manchester has remained a top choice for investors after the pandemic.
For such a major city – Manchester is often dubbed ‘the capital of the north’ – property prices in Manchester are still comparatively low. The average semi-detached property in Manchester is just £251,000, far below prices in the south east.
The low property prices are attracting property investments in Manchester from a wide range of buyers. From increasing numbers of foreign investors to millennial buy-to-let landlords, Manchester is a popular choice for new and established property investors.
And with these affordable property prices come excellent returns. A Manchester property investment bought for below £194,000 can generate monthly rents of £1,141.
Manchester’s economy is worth a huge £62.8billion. But what makes it different to other major UK cities – in particular London – is that it isn’t overly reliant on just a couple of sectors. Instead, Manchester boasts a diverse economy made up of growing technology, media and property industries.
Manchester’s multifaceted economy was much better able to weather the storm of coronavirus and limit the damage from the various lockdowns. And in its diversity there is strength. Manchester has been named the best city in Europe for business and as one of the top ten global cities for startups.
Manchester’s location is another reason for its successful bounce back. Situated just a short journey from the other major northern cities of Liverpool, Leeds and Sheffield, over 7 million people live within an hour of Manchester.
And with the construction of HS2 and Northern Powerhouse Rail, moving between these cities is going to become even easier. As more people move and commute to Manchester, the city’s economy and property market will continue to flourish.
In fact, Manchester’s population is expected to grow by almost 10% by 2034, increasing demand for housing and continuing to improve returns on property investments in Manchester.
High levels of development
The coronavirus pandemic didn’t stop construction and development in Manchester – it was actually the opposite.
2020 was a record-breaking year for residential construction projects, creating plenty of new opportunities for property investment in Manchester.
35 residential projects were completed in 2020 – up from 27 the previous year. These projects created 4,924 properties, with a further 12,322 still in the pipeline.
Even Manchester’s office construction sector performed well during the pandemic. In 2020, 1.2million sq ft of office space was created across 8 schemes, making it the best year for the office construction sector since 2008.
Find out more
If you’re interested in property investments in Manchester, contact North Property Group today to find out more about this resilient city’s investment opportunities.